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Jaiprakash Associates approaches NCLAT over distribution of funds

#Builders & Projects

Last Updated : 15th Mar, 2023

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Synopsis

Jaiprakash Associates has approached the insolvency appellate tribunal NCLAT against the NCLT order concerning the distribution of Rs 740 crores in the Jaypee Infratech matter. The amount in question was deposited by Jaiprakash Associates Ltd (JAL), the erstwhile promoter of Jaypee Infratech Ltd (JIL), which is undergoing insolvency proceedings since August 2017. According to sources, JAL has challenged the NCLT order over the distribution of the money. The matter is scheduled to be herd before a two-member bench of the NCLAT today.

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Jaiprakash Associates has approached the insolvency appellate tribunal NCLAT against the NCLT order concerning the distribution of Rs 740 crores in the Jaypee Infratech matter. The amount in question was deposited by Jaiprakash Associates Ltd (JAL), the erstwhile promoter of Jaypee Infratech Ltd (JIL), which is undergoing insolvency proceedings for the last six years. According to sources, JAL has challenged the NCLT order over the distribution of the money. The matter is scheduled to be herd before a two-member bench of the NCLAT today.

Earlier this month, the NCLT approved a resolution plan in which Mumbai-based Suraksha Group bid to take over Jaypee Infratech Limited (JIL). In its order, the NCLT directed that of out the Rs 750 crores deposited by JAL with the Supreme Court, Rs 543 crore be paid to JIL, Rs 107 crore be put into an escrow account of homebuyers and Rs 100.48 crores be returned to JAL.

The corporate Insolvency Resolution Process (CIRP) against JIL began in August 2017 by an IDBI Bank-led consortium. More than twelve banks and over twenty thousand homebuyers participated and after four rounds of bidding, Suraksha Group won the bid with 98.66 per cent votes.

Jaypee Infratech Limited is a real estate company based in India, which was established in 2007. The company was involved in the development of various housing and commercial projects in different parts of India. After facing numerous

The company faced financial troubles and failed to deliver its projects on time, leading to a large number of complaints from its customers. As a result, in August 2017, the National Company Law Tribunal (NCLT) initiated insolvency proceedings against Jaypee Infratech under the Insolvency and Bankruptcy Code (IBC) of India.

The insolvency proceedings were triggered by a petition filed by IDBI Bank, which was one of the major lenders to Jaypee Infratech. The NCLT appointed an interim resolution professional (IRP) to manage the affairs of the company and invited resolution plans from interested bidders.

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